A Tug-Of-War Between Themes – Live with Louis Llanes

Published on
August 10th, 2020
Duration
68 minutes

Navigating Turbulent Waters – Live with Peter Boockvar


A Tug-Of-War Between Themes – Live with Louis Llanes

Live ·
Featuring Louis Llanes

Published on: August 10th, 2020 • Duration: 68 minutes

Dichotomies abound in today’s markets. The short term macro outlook says one thing while the long term says another. Dislocations between large and small cap companies are running rampant as indexation methods obscure proper valuations. All the while, concerns about a potential second wave of COVID-19 stoke fear among market participants. How does one trade such a duplicitous environment? This is what we will be discussing on today's Real Vision Live with Louis Llanes, CFA, CMT, and founder of Wealthnet Investments. He will sitting down with Max Wiethe to break down his holistic approach to investing while explaining how participants could profit from this exceptional period in global financial markets. Check out Louis' chart deck here: https://rvtv.io/3iDMkHV

Comments

Transcript

  • SG
    Sashi G.
    25 August 2020 @ 09:14
    To add a counter to Max's point - investing in the market does benefit the company (not just trading between investors) because the rise in market cap benefits the "currency" of the company to use it for more growth/investment - as Louis pointed out.
  • SG
    Sashi G.
    25 August 2020 @ 09:03
    Good to see someone on RV finally mentioning commodities as the hidden trade waiting to happen. Commodities as an asset class is neglected quite a bit on RV I feel. Louis and Mish (Schneider) are two who mention it in the course of other things. But commodities lack focus on RV - maybe a reflection of the investor malaise in general for this class.
  • SG
    Sashi G.
    25 August 2020 @ 08:07
    Always enjoy Louis on RV. Very consistent in the quality of his presentations over the years. You may agree or not but he has a very clear thesis for his views. A bit surprised at the lesser number of comments on this video as well as the number of ratings. I wonder why.
  • TP
    Tillman P.
    12 August 2020 @ 15:41
    super informative and enjoyable.
  • ES
    Edward S.
    11 August 2020 @ 19:38
    Louis has a great attitude about what he does. Fantastic interview.
  • Sv
    Sid v.
    11 August 2020 @ 17:10
    excellent interview, thank you
  • wj
    wiktor j.
    11 August 2020 @ 09:57
    Fed will buy ETF's ( at a lower price ). I think all ETFs will be bailed out next selloff.
  • BR
    Brian R.
    10 August 2020 @ 21:39
    there have been many good shows on since I signed up, this one was up there with the best - telling it how it is. Thank you. I got lots out of this but something that came to mind was that it would be great to get someone on the program who can talk more about the commodity complex I mean one's we haven't heard too much about yet like nickel, Al, etc and I mean a bit broader, big companies and small and explorers (there was a guest on juniors a couple of months back I know). Some explorers or juniors had very high prices in 2011 and they are at near zero now but look good to me and I feel if we are going into a commodity boom, whether it be now or a little later when more QE comes or the M2 really kicks in it would be great to be loaded up with ideas other than the crowded trades of Au and Ag. No criticism intended just more trade ideas for what may lie ahead and a disclaimer from me I have idea what I am talking about and yes I have already speculated in a bit of Ni/Cu exploration who look solid to me in the good quality Ni but I am wondering if I should pump more. Thanks again
    • MT
      Mike T.
      11 August 2020 @ 00:59
      If you're going to rely on others for ideas its most probable over time you'll end up really frustrated. One tip, do not get in the habit of thinking being in 'crowded' trades is necessarily a bad idea as crowded underlyings often have optimal liquidity e.g. SPY, A good place to start with trying to formulate your own ideas, is filter out, dismiss anything with bad, illiquid underlyings with wide spreads, maybe also take it a step further anything without highly liquid Options also steer clear. An approximate guide to optimum Options liquidity pull up Monthly Option Chain for whatever Symbol you're interested and look for Spreads no worse than $0.10 wide, must have multiple strikes with Open Interest in the thousands, at least one strike with daily volume in the thousands, lastly within an Option Chain if there are any strikes at all with zero bid walk away. In looking for ideas liquidity comes first, second and third in priority. If taking the Opinions from Chartists newsletters, and many do, ask the author if making a forecast of future price movement to confirm the mathematical % probability of being correct and really study their response very carefully.
    • BR
      Brian R.
      11 August 2020 @ 03:28
      thanks Mike T, handy tips duly noted
  • SM
    Stephen M.
    11 August 2020 @ 00:38
    Excellent interview. His use of stops as it relates to multiple timeframe analysis was clear and helpful. I would be much interested in seeing more of his technical framework.
    • MT
      Mike T.
      11 August 2020 @ 01:09
      Using stops for profit taking purposes is fine. Using so called protective stops to limit losses is not so good as over the long term, keep records of your trades will likely show protective stop losses are frequently $$ transactionally very inefficient i.e the 'fills' can be of very bad quality, particularly if you stray into using instruments with poor liquidity.
    • LL
      Louis L. | Contributor
      11 August 2020 @ 01:45
      Mike, maybe I can clarify. We have done extensive real time investing and quantitative simulations to validate risk management protocols. When I mentioned “stops”, I don’t mean resting stop orders in the market. Those will slip you up. I’m talking about predefined risk levels that require action to scale out. Most of the best traders have risk management protocols that require an exit to limit losses and to let their profits run. The key is to not place your risk levels too close to the entries and to position size appropriately. It also requires an understanding of changes in volatility. The mathematics of good investing require your average gain to be much higher than your average loss. Risk management protocols help you manage that relationship especially if you are dealing with diverse instruments. This allows for your hit rate to fall at times and still have reasonable results. If you are only trading stocks, our research indicates that it’s imperative to have a general market overlay as well to change exit rules and defer new entries. If you trade diverse futures instruments risk management rules can be quite different because the correlation among instruments is lower. Scaling in and out helps when based on your signal strength.
  • tr
    tom r.
    10 August 2020 @ 23:10
    A truly great interview! Lots of common sense and great charts when you could see them in focus. Max is a great interviewer as well. As usual though, whoever is charge of keeping things in focus is either drunk, desperately needs new glasses or is a relative of a higher up at Real Vision. Why can't you fix this? It is ridiculous! At least Louis was always in focus.
  • TB
    Tobin B.
    10 August 2020 @ 23:06
    Good talk good info good audio recording good to hear a fellow Coloradan's mannerisms. I upgraded to the next tier for this and Im happy with my purchase. Has anyone asked about calendar invites for the upcoming RV Live talks? Super easy to implement and super valuable so talks arent missed.
  • MM
    Michael M.
    10 August 2020 @ 21:01
    Thanks, good information and specific ideas to consider.